The Nature of Staffing Chapter One Staffing Models and Strategy Overview and Models

CHAPTER ONE Staffing Models and Strategy Overview and Models

CHAPTER ONE Staffing is a critical organizational function concerned with the acquisition, deployment and retention of the organization’s workforce. This chapter begins with a formal definition of staffing, followed by a detailed examination of the implications of the definition for helping us understanding staffing systems.

Organizations and Staffing Combinations of physical financial and human capital Human capital – KSA of people and their motivation to use them successfully on the job Workforce quality – a way of referring to an organization’s human capital Organization’s workforce – a stock of human capital it acquires, deploys, and retains in pursuit of orgl outcome such as profitability, market share and customer satisfaction Staffing is organizational function used to build the organization’s workforce through such systems as Staffing Strategy, Human Resource Planning, Recruitment, Selection, Employment and Retention

Staffing is a big business for both organizations and job seekers Collective workforce at the national level – a huge number Spread over huge number of worksites of different sizes Each worksite employ some form of staffing process for acquisition of employees Huge number of hire transactions every month and year Apart from that there are temporary employees, internal transfers, promotions. So the total number makes it really a big volume business

Competitive advantage and financial implications Labor cost – 25% of the total revenue or even bigger in labor intensive industries Service providing industries dominate economy – matters of labor cost loom large for many organizations Shift in viewing employees from cost of doing business to human capital creates competitive advantage for the organization Superior customer service through highly knowledgeable employees provide long-term “leg up” on competitors Such competitive advantage has important financial implications

Value Creation through Staffing Human capital – an intangible asset for an organization, difficult to measure and place value on Valuation by market and financial analysis of an organization’s stock in access of its tangible assets represents a premium for the intangible assets that make the organization valuable – such as human capital Organization’s stock value = tangible asset + intangible assets (human capital) High quality employees can indeed be value adding So, needs an effort for Value Creation through appropriate Staffing

Definition of Staffing Staffing is the process of acquiring, deploying and retaining a workforce of sufficient quantity and quality to create positive impacts on the organization’s effectiveness

Implications of definition Acquire, Deploy and Retain Acquisition involve external staffing system that govern the initial intake of applicants into the organization Deployment refers to the placement of new hires on the actual job they will hold, something that may not be entirely clear at the time of the hire, such as the specific work unit or geographical location Retention system seek to manage the inevitable flow of employees out of the organization

Staffing as a Process or System Staffing is not an event Staffing is a process that establishes and governs the flow of people into the org, within the org and out of the organization There are multiple interconnected systems that orgs use to manage the flow of people. These include : Planning, recruitment, selection, decision making, job offer and retention systems Occurrences and actions in one system inevitably affect other systems

Quantity and Quality Staffing in org requires attention to both numbers (quantity) and types (quality) of people brought into, moved within and retained by the organization Quantity element basically refers to having enough head count to conduct business Quality element entails having people with the requisite KSAOs so that jobs are performed effectively

Organization effectiveness Staffing system should be used to contribute to the attainment of organizational goals such as survival, profitability and growth Acquisition of new leaders to change the organization’s direction and effectiveness; prevention of key leader losses; use of talent as a source of growth and competitive advantage; shortage of labor – both quality and quantity – that threaten growth and even survival; and the ability of individual managers to effectively run their work units

Staffing models Staffing Quantity : Levels Organizations must be concerned about staffing levels and their adequacy The organization as a whole, as well as for each units, forecasts workforce requirements – the needed head count – and then compares these to forecasted availabilities – the likely employee head count – to determine its likely employee position

Staffing Quantity Model Projected staffing requirement Projected staffing availabilities Compare Overstaffed Fully staffed Understaffed

The Nature of Staffing Definition of Staffing Staffing is the mutual process by which the individual and the organization become matched to form the employment relationship. This straightforward definition contains several implications, which are identified and explained next. Implications of Definition - Organization and Individual Perspective - Staffing as a Process or System - Forming the Employment Relationship Importance of Staffing

Staffing Quality : Person/Job Match Seeks to align characteristics of individuals and jobs in ways that will result in desired HR outcomes Degree of fit or match between the characteristics of the job and the person There are implied consequences for every match

STAFFING MODELS Person/Job Match Exhibit 1.2 Person/Job Match

Person/Job Match 1. Positive interaction of individual and job characteristics creates the most successful matches 2. Matching process involves a dual match of KSAOs to requirements and motivation to rewards. Both matches require attention 3. Job requirements should usually be expressed in terms of both the tasks involved and the KSAOs thought necessary for performance of those tasks 4. Job requirements often extend beyond task and KSAO requirements 5. Matching process can yield only so much by way of impacts on the HR outcomes

Staffing quality : Person/Organization Match Organization seeks to determine not only how well the person fits or matches the job but also organization Applicants often assess how they think they might fit into the organization, in addition to how well they match the specific job’s requirements and rewards Organization and applicant both have a concern with a person/organization match In each of the above cases, the matching process is expanded to include consideration of requirements and rewards beyond those of the target job as it currently exists

STAFFING MODELS Person/Organization Match Exhibit 1.2

Staffing System Components Staffing encompasses managing the flows of people into and within the organization, as well as retaining them Core staffing process has several components that represent steps and activities that occur over the course of these flows Joint interaction between the applicant and the organization

Staffing System Components Exhibit 1.3 Staffing System Components

The Staffing Organizations Model HR and Staffing Str. Organization Mission Goals and Objectives Organization Strategy Staffing Policies and Programs Support Activities Core Staffing Activities Legal Compliance Recruitment : external, internal PlanningSelection : measurement, external, Internal Job analysis and rewardsEmployment : decision making, final match Staffing System and Retention Management

Staffing Organizations Organization’s mission and goals and objectives drive both organization and HR and staffing strategy, which interact with each other when they are being formulated Staffing policies and programs result from such interaction and serve as an overlay to both support activities and core staffing activities Staffing levels and staffing quality are the key focal points of staffing strategy, policy and programs

Organization, HR and Staffing Strategy Organizations formulate strategy to express an overall purpose or mission and to establish broad goals and objectives that will guide the organization toward fulfillment of its mission

Support activities Support activities serve as the foundation and necessary ingredients for the conduct of core staffing activities Legal compliance represents knowledge of the myriad laws and regulations, especially, equal employment opportunity and affirmative action (EEO/AA) and incorporation of their requirements into all phases of the core staffing activities Planning serves as tool for first becoming aware of key external influences on staffing particularly economic conditions, labor markets and labor unions Job analysis represents the key mechanism by which the organization identifies and establishes the KSAO requirements for jobs, as well as the rewards jobs will provide, both first steps toward seeking to begin filling projected vacancies through core staffing activities

Core Staffing Activities Core staffing activities focus on recruitment, selection and employment of the workforce. Since staffing levels have already been established as part of staffing planning emphasis shifts to staffing quality to ensure that successful person/job and person/organization matches will be made

Staffing and Retention System Management Various support and core staffing activities are quite complex and they must be guided, coordinated, controlled and evaluated Such is the role of staffing system management

Staffing Strategy Staffing Levels Acquire or develop talent Lag or Lead System External or Internal Hiring Core or Flexible Workforce Hire or Retain National or Global Attract or Relocate Overstaff or Understaff Hire or acquire

Staffing Strategy Staffing Quality Person/Job or Person/Organization Match Specific or General KSAOs Exceptional or Acceptable Workforce Quality Active or Passive Diversity

Staffing Ethics Ethics involves determining moral principles and guidelines for acceptable practice. Within the realm of workplace, ethics emphasizes “knowing organizational codes and guidelines and behaving within these boundaries when faced with dilemmas in business or professional work” Organizational ethics seek to Raise ethical expectations Legitimize dialogue about ethical issues Encourage ethical decision making Prevent misconduct and provide a basis for enforcement

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